The FED will be successful at reflating the US economy. However, the buying of Treasuries, to push long term government bond yields lower, will not directly transmit lower funding rates to any important parts of the economy (such as the household sector). In fact it...
It amuses me to this day to see respectable institutions suing mortgage originators for violations of reps and warranties associated with the creation of non-agency residential mortgage backed securities. The whole creation of alt-a and subprime securities came about...
We have sent the October Global Fixed Income Monthly to printer and it should available in a couple hours. We will forward the pdf once it comes back. In the mean time I have attached the forecast summary for everyone to chew on…enjoy! Forecast Summary Since the...
Yesterday was the "coming out" party for the FOMC minutes. It was formally announced that the minutes are now a policy tool - they can be used to ease or tighten policy. Oh boy!! Given the recent FOMC record on delivering a clear and transparent message, this is gonna...
The part I found most interesting is where the FOMC thought it was important for us have the Fisher equation spelled out in detail - "With short-term nominal interest rates constrained by the zero bound, a decline in short-term inflation expectations increases short...
For the bulk of the FOMC voting members, the act of easing monetary policy from current levels involves outright buying of longer dated Treasury securities with the explicit intent to lower longer term bond yields. As Vice Chairman Dudley stated in his seminal October...
For the bulk of the FOMC voting members, the act of easing monetary policy from current levels involves outright buying of longer dated Treasury securities with the explicit intent to lower longer term bond yields. As Vice Chairman Dudley stated in his seminal October 1st speech: “…purchases of long-duration assets pull down the level of […]
